Louisiana’s Economy by yxm80800

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									Louisiana’s Economy


  Resources and Rewards
Basic Economic Concepts


   Section 1 - Vocabulary
Define goods
   Goods are physical items

List examples of goods
         •Car       •Food
         •House     •Books
         •Clothes   •Television
Define services
 Services are activities people do for a fee.

List examples of people who perform
services
        •Teacher        •House Painter
        •Postman        •Musicians
        •Hair Stylist   •Mechanic
Define consumer
 A consumer is a person who satisfies a
 want or need by buying a good or service.

Define producer
 A producer is a person or business who
 uses resources to make goods or provide
 services.
Look at the pictures below.
Discuss the consumer and producer from each picture.
Define natural resource
  Natural resources are gifts from nature

Define human resource
  Human resources are people who
  produce goods or services

Define capital resource
  Capital resources are the money
  and property
Discuss the three types of resources found in
the photograph below.
Define scarcity
    Scarcity means that people want or
    need more than the available
    resources can supply.


Discuss what happens after a big hurricane.
Everyone needs to fix the damages on their
homes. People begin to purchase items from the
lumber yard. How does scarcity effect this
situation.
Define opportunity benefit
  Opportunity benefit is the item
  purchased or chosen or the value of the
  item purchased or chosen when a choice
  is made
Define opportunity cost
  Opportunity cost is the item you did
  not choose or the value of the next
  best alternative given up when a
  choice is made
You go to the mall with $60. Make a choice on the items you
will purchase. Now explain which item(s) are opportunity
cost or opportunity benefit.




$10
                                                  $40


                          $20




 $35                                        $15
Define supply
  Supply is the quantity of goods or
  services offered for sale



Define demand
  Demand is the quantity of goods or
  services people are willing and able
  to buy
Discuss what happens if
the everyone in the town
   of Abbeville goes to
McDonald’s on the same
day at the same time and
  orders the exact same
  thing. What does this
 have to do with supply
       and demand?
  Define profit

    Profit is the amount left after costs are
    subtracted.




Price Item Sold for – Cost to Make Item = Profit
Define traditional economy
 Traditional economy customs, beliefs,
 and habits determine how the four basic
 questions are answered.

           What to produce
           How to produce
           How much to produce
           For whom to produce
Define command economy
 Command economy the government
 controls the economy and answers the
 four basic economic questions
          What to produce
          How to produce
          How much to produce
          For whom to produce
Define market economy
 Market economy individuals answer the
 four basic economic questions based
 upon supply and demand.
        What to produce
        How to produce
        How much to produce
        For whom to produce

								
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